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Countries adopt Poland's fresh pension strategy, following suit

European nations, such as Germany, are facing demographic shifts. In response, Poland and the Netherlands are devising innovative approaches to their pension structure systems.

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Countries adopt innovative pension strategies modeled on Poland's approach
Countries adopt innovative pension strategies modeled on Poland's approach

Countries adopt Poland's fresh pension strategy, following suit

The Polish and Dutch governments have announced new pension system models aimed at providing financial security in an aging society. In Poland, the proposed system, known as the "Osobiste Konto Inwestycyjne" (OKI), is scheduled to start in mid-2026, with the infrastructure expected to be ready within a year.

The OKI is a personal investment account for citizens to build wealth for retirement, focusing on the capital market. This new system, like the one proposed in Germany, moves away from the intergenerational contract in pensions. The Polish government's proposal for the new pension system was reported by Merkur.

In the Netherlands, the motto for the new retirement age policy is "The longer you live, the longer you can work." The retirement age will be linked to life expectancy, with a three-year increase in life expectancy requiring two additional working years. The retirement benefit period will be extended by one year for every three-year increase in life expectancy.

The Dutch government plans to link the retirement age to life expectancy by adjusting the retirement age every five years based on changes in average life expectancy, aiming to ensure the sustainability of the pension system. This approach is not unique to the Netherlands; Poland's new pension system also focuses on personal responsibility.

The OKI allows for tax-free retirement savings, and around 23,000 euros can be invested without incurring capital gains tax. A low wealth tax of less than one percent is only deducted at higher amounts in the OKI.

In addition, a new book titled 'Getting money back from Uncle Sam - Tax return for retirees and pensioners 2024/2025' has been published, providing valuable information for those navigating the complexities of retirement finances.

These new pension systems are part of each country's response to demographic change and aging society. By encouraging personal responsibility and sustainability, they aim to provide a secure financial future for their citizens.

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